Summer 2018 Volume 11, Number 2 | |||||
Insurance Terminology 101 — What You Don’t Know Could Cost You Health insurance protects you from financial ruin should you have a serious health issue and makes it more likely you'll seek treatment when you're ill. To get the most from your coverage, you should understand certain financial insurance terms and how they affect your coverage. The more you understand what bills you are responsible for, the better you can avoid financial difficulties if you need medical treatment. Copay
Each time you see a doctor or buy a prescription, you're asked for a fixed sum payment. That's your copay. Check your insurance card — the amount you have to pay should be listed on the card. Deductibles
When choosing a health insurance plan, varying levels of deductible are often available. Coinsurance Coinsurance is the portion of medical costs you and your insurance company will share once you meet your deductible. The amount is usually represented by a percentage. Typical percentages are 100%, 90/10, 80/20 and 50/50. For example, if you met your deductible and later had a $2,000 medical procedure, with an 80/20 coinsurance insurance plan, you will pay $400 and your insurance company will pay $1,600. Out-of-Pocket Maximums
If your medical expenses are high, there may come a time when you don’t have to pay copays and coinsurance. You only pay medical expenses until you meet your out-of-pocket maximum. An out-of-pocket maximum is the most you must pay for covered medical expenses during a policy period. This amount includes the money you spend on deductibles, copays and coinsurance. Once you reach your annual out-of-pocket maximum, your insurance will pay 100 percent of your covered medical and prescription costs for the rest of the plan year. You still will pay your premiums until the end of the plan year. [return to top]
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Life Insurance for any Age — Especially During Retirement Annuity Sales to Pick-Up in 2018 Insurance Terminology 101 — What You Don’t Know Could Cost You |
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